Company Information for Zijin Mining Group Ltd

HKEX-2899

www.zjky.cn/tabid/138/Default.aspx

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HKEX; 2899

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Company Statement

As a famous gold mining enterprise and one of the Top 500 Enterprises Top 500 Enterprises in China, Zijin Mining Group Company Limited is an H-share company listed at the Hong Kong Stock Exchange (Stock name: Zijin Mining; stock code: 2899). Zijin Mining was included in the FTSE Mining sector Indexes on 20 December 2004; it was added to the Dow Jones China Offshore 50 Index on 20 March 2006; and on 20 October 2006, it entered into the FTSE/Xinhua China 25 Index. According to FORBES, Zijin Mining Group ranked 17th among the name list of China Top Enterprises and 16th among the list of China 's Overseas Listed Companies with the Most Investment Value (1st of all mining enterprises) in 2006.

The Company has established 88 subsidiaries in more than 20 provinces across China including Fujian where its head office is located, Xinjiang , Guizhou , Inner Mogolia, Jilin , Qinghai , Tibet , Heilongjiang , Henan , etc as well as in 7 overseas countries. The Company has successfully invested in Nari Tolgoi Gold Mine of Mongolia, Tai-Pan Lead-zinc Mine of Vietnam and its neighboring Iron Mine with the transfer of those companies’ shareholding rights. Besides, it has become the largest shareholder of Ridge Mining, a listed company on the London Stock Exchange, and has made via tender offer the successful acquisition of Monterrico, another listed company on the London Stock Exchange.

At the end of 2006, according to the calculation of equity interests, the ensured metal (ore) resources/reserves of the Group Company were as follows: about 455 tons of gold (57 tons of which were associated gold), 151 tons of platinum & palladium, 6.7 million tons of copper, 2.38 million tons of zinc, 544,600 tons of nickel, 400,000 tons of lead, 260,000 tons of molybdenum (30,000 tons of which were associated molybdenum), 100,000 tons of tin, 188 million tons of iron ore, and 300 million tons of coal.

Current Operations

Investment
In the first half of year 2007, the Group investigated 43 projects in the PRC and abroad,among which, contracts of 7 domestic mine projects were officially concluded, including the Xinjiang Wulagen Lead and Zinc Mine, Sichuan Songpan County Dongbeizhai Gold Mine,Malipo County Tungsten Mine and an integration of associated resources, Hunan Anhua Liaojiaping Antimony Tungsten Mine, Hunchun Yangjingou Tungsten Mine, Yunnan langdu Copper Mine, Lannitang Copper Mine and as a result that the resources controlled by the Group increased dramatically. The Group also successfully acquired two international projects. The Group’s associate company-Zijin Tongguan successfully acquired 89.9% equity interest of Monterrico by way of offer, and as a result, it gained the exploration right of a substantial large copper and molybdenum mine in Rio Blanco, Peru. The takeover has successfully been completed. The Group’s wholly owned subsidiary – Xinjiang Zijin has successfully acquired the whole equity interest of CBML recently and accordingly controlled the ZGC Gold Project in Tajikistan. The Group has sent over key technical and management members to the ZGC to supervise ZGC’s production and operation. The Group has made great progress in internationalization.

Projects Construction
Domestic projects progressed smoothly, including, the Zijinshan Gold Copper Mine joint technological renovation, Dongping Gold Mine technological renovation, Guizhou Shuiyindong Phase III technological renovation, Guangdong Xinyi Gold Mine and Tin Mine technological renovation, Xinjiang Fuyun Reduced Iron Project, Wulatehouqi 200,000 tonnes per year process plant technological renovation, Zijin Copper Company Copper Sheet Belt Project, Makeng Iron Mine Phase II technological renovation, Tibet Yulong Phase I Project etc. Some of the above projects will start production soon, and will provide powerful support for the Group’s future development.

As to the international projects, the exploration, development, and construction of Mongolia Nari Tolgoi Gold Mine proceed on schedule and is expected to be completed and production is to commence by the second half of year 2007. The Vietnam Ha Giang Lead-Zinc Mine is in production and its 300 tonnes per day production plant was in operation. Russia Kuton Gold Mine and Tuva Lead Zinc Mine were also in the process of applying for approval and have in place certain preliminary preparation work for project construction.

Geological Exploration and Management of Mining Rights
During the reporting period, the Group invested RMB49,850,000 into geological exploration, mainly for the purpose of enhancing the depth of mine exploration. The Group has made good progress in the exploration of the Zijinshan area, Guizhou Shuiyindong Gold mine and Wulatehouqi Dongshengmiao areas and their surroundings.

In the first half of year 2007, the Group has transferred 19 exploration rights, cancelled 3 exploration rights, and increased 8 new exploration rights (140.31 sq.km.), and 1 exploration right was used as capital injection. As at 30 June 2007, the Group has a total of 163 exploration rights, covering an area of 5,293.36 sq.km.

As at 30 June 2007, the Group has a total of 33 mining rights, covering an area of 50.1912 sq.km. It included 6 mining rights newly acquired in this year, covering an area of 8.924 sq.km. The above mining rights covers various mineral resources including gold, copper, zinc, iron, lead, tin, antimony, tungsten, limestone, and etc.

As a result of the successful acquisition of RIO-BLANCO Copper Molybdenum Mine in Peru and JILAU/TAROR gold mine in Tajikistan, mineral resources controlled by the Group increased tremendously. As at 30 June 2007, the Group has recorded the following metal (ore) resource/reserves: about 591 tonnes of gold (including 57 tonnes gold associated with other metals), about 151 tonnes of platinum and palladium, about 8,520,000 tonnes of copper, about 2,380,000 tonnes of zinc, about 0.5446 million tonnes of nickel, about 0.4 million tonnes of lead, about 0.36 million tonnes of molybdenum (including 0.027 million tonnes molybdenum associated with other metals), about 0.1 million tonnes of tin, about 173 million tonnes of iron ores, and about 300 million tonnes of coal (on equity base for non-subsidiaries).

Geographical Spread

Board of Directors and Key Management

Chen Jinghe	(CEO)
Liu Xiaochu	(Joint Vice Chairman)
Luo Yingnan	(General manager)
Lan Fusheng	(Joint Vice Chairman)
Huang Xiaodong	(Director & Senior Vice-president)
Zou Laichang	(Director & Senior Vice-president)

Non-executive directors:
Ke Xiping	Independent
Long Bingkun	Independent
Chen Yuchuan	Independent
Lin Yongjing	Independent
Su Congfu	Independent
Zheng Jinxing	Chairman of the Board of Supervisors

Company Address

No 1 Zijin Road

Shanghang County, China


Telephone:	(86) 597 3833105
Facsimile:	(86) 597 3833997
Email:	zjky[at]ziky.cn
Website:	http://www.zjky.cn/tabid/138/Default.aspx

Capital

Shares Issued: 4,005,440,000 (31/5/2008)

Annual General Meeting

May

Year End

December 31st

Nominated Advisors

Charltons, Hong Kong

Most Recent Statement

25/06/08 - Chairman Chen Jinghe is employed as guest professor by management school of Xia’men university
23/06/08 - Proposal for Allocation of Cash Bonus Passed at 2007-Year Zijin Mining Stockholders Conference
20/06/08 - Consolidation of China Geology Survey Bureau with Zijin Mining—— Two Parties Signed Rough Agreement On Strategy Cooperation On 18 June
19/06/08 - Ashele Copper Mine=Employing Base
18/06/08 - Xinjiang Autonomous Region Supports Zijin Mining To Be Top One In Xinjiang And Central Asia
10/06/08 - Guizhou Zijin praised for positive work in hiring local labour

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